Egyptian markets are awaiting next week’s decision on fuel prices and announcements of concrete steps regarding the government privatization program.

According to Fahima Zayed, Al Arabiya Business correspondent, Egypt will observe a public holiday tomorrow, while next week will witness important economic events, foremost among them monitoring fuel prices, which are of great concern to Egyptians amid expectations of a new increase since the beginning of this month.

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Zayed explained that the Egyptian Prime Minister previously confirmed that no final decision has yet been made regarding fuel price adjustments, noting that the last increase occurred in April when prices rose between 11% and 13% for gasoline, 14.8% for diesel, and 33% for butane cylinders.

She added that next week will also see the start of talks between the Egyptian delegation and IMF officials on the sidelines of the autumn meetings to review progress under the fifth and sixth reviews of the $8 billion Extended Fund Facility program.

The discussions with the IMF will focus on achievements in the government privatization program and increasing the private sector’s contribution to the economy.

She pointed out that the Egyptian government held intensive meetings in recent days chaired by the Prime Minister to accelerate the implementation pace of the privatization program and announce concrete steps in this file in the near future.

Egyptian Prime Minister Mostafa Madbouly said on Tuesday that the government has not taken any measures regarding fuel price increases.

The Egyptian market is awaiting the restructuring of fuel prices (gasoline, diesel, and butane cylinders) during the last quarter of 2025, with fuel tariffs to be set for three months at the next pricing committee meeting.

Despite the shrinking subsidy gap, expectations lean towards a new increase not exceeding 10%, preparing for the final phase of price liberalization.

The 2025-2026 fiscal budget saw a significant reduction in fuel subsidies to 75 billion Egyptian pounds, compared to 154.5 billion pounds in the previous fiscal year.

Pricing Formula

The government relies on an automatic pricing formula that calculates the average change in Brent crude prices from one quarter to another, the exchange rate change of the Egyptian pound against the dollar during the same period, along with local costs related to transportation, refining, and distribution, according to officials.

On April 11, 2025, Egypt’s automatic pricing committee announced increases in prices for gasoline, diesel, mazut, and butane. The new increases covered all types of gasoline, with 95-octane rising from 17 to 19 EGP per liter, 92-octane from 15.25 to 17.25 EGP per liter, and 80-octane from 13.75 to 15.75 EGP per liter. Diesel prices also increased from 13.50 to 15.50 EGP per liter.